I heard that the webtv(msntv) internet receiver is anonymous and untraceable on the internet, because it's ip# changes everytime it logs on. Does that mean it's a proxy of it's own?

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No. Even with dialup, your IP changes every time you connect, but that doesn't given you any additional safety because the ISP still keeps logs of who had what IP at what time. Dynamic IPs might make it a bit easier avoid/circumvent being banned on certain websites, until they start banning entire subnets, but having a dynamic IP means nothing once they get the law or the ISP involved.

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